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- Issuing More Debt: This appears to be the only viable choice remaining. However, doing so would mean refinancing at current high-interest rates, significantly increasing annual interest payment obligations to around $1.3 trillion—larger than the entire defense budget.
The Trump Administration's Strategic Response
Scott Bessent, an influential figure associated with market strategies under the Trump administration, outlines a comprehensive plan to navigate this financial storm in phases. His insights illustrate how the government intends to tackle rising debt without plunging into recession.